The Chinese government continues to increase pressure on crypto companies. Thus, the authorities want to protect their citizens from the risk associated with investing in digital assets.
Renowned crypto advocate Bobby Lee has spoken out about the tightening of new money regulations. He is confident that despite the government’s loyalty to the digital yuan, the Chinese authorities will continue to implement a plan to completely eradicate crypto.
“Right now, the Chinese government has devoted a lot of resources to regulating the crypto industry. However, such steps are associated exclusively with the popularization of the digital yuan. The fate of the rest of the digital assets does not really care about China. I don’t exclude the possibility that in 4-5 years the country will introduce a complete ban on the use of all digital currencies in the country. This can cause an irreparable blow to the business. Which for many years has invested huge sums in the development of their companies (stock exchanges, exchangers, etc.)”.
In support of Lee’s assumptions, the recent ban by the Chinese authorities on crypto mining. Thus, they want to protect citizens from risky investments.
The crypto mogul added that now it is legal to store Bitcoins in China. It can be bought and sold, but it is impossible to do this using online platforms. “When Bitcoin reaches the $ 500,000 or $ 1 million mark, China may ban it altogether. Then people will no longer be allowed to store it”, Lee said.
The businessman assessed the possibility of introducing a complete ban on crypto in the country as quite high (“50/50”). According to him, such an action by the authorities would be “the last straw” for many investors.
Does the first crypto have an optimistic future?
Lee believes that the Chinese authorities have declared war on Bitcoin not because of the environmental damage when mining Bitcoin. But because of the lack of opportunities to regulate its value in the domestic market. The crypto billionaire also advised miners to sell their electronic equipment before it dropped significantly in value.
However, despite this, the entrepreneur predicted an optimistic future for Bitcoin. So, according to him, the rate of the most popular cryptocurrency by the end of this year will grow to $ 250 thousand. And by 2025, the price of Bitcoin will be able to exceed the $ 1 million mark for the first time in history.
The restrictions China may impose won’t be big obstacles for cryptocurrency, Lee said. According to him, the success of bitcoin has never depended on the actions of a particular country.
Recall that the founder of the Galaxy Digital crypto bank Mike Novogratz called the exodus of miners from China a “big plus” for the cryptocurrency industry.
The head of MicroStrategy, Michael Saylor, noted that the restrictive measures against Bitcoin mining in China were a geopolitical blunder of the authorities. He called it a “trillion dollar mistake”.
Chinese miners are already looking for a harbor in North America and elsewhere with more favorable regulatory regimes. And, in some cases, greener energy. For example, in the United States, miners have begun making commitments to renewable energy as the debate over Bitcoin’s carbon footprint heats up.
Notably, Tesla CEO Elon Musk recently met with members of North America’s largest mining companies to discuss their intention to publish public energy balance reports in the future.